Correlation Between Templeton Global and Capital World
Can any of the company-specific risk be diversified away by investing in both Templeton Global and Capital World at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Templeton Global and Capital World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Global Bond and Capital World Bond, you can compare the effects of market volatilities on Templeton Global and Capital World and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Templeton Global with a short position of Capital World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Capital World.
Diversification Opportunities for Templeton Global and Capital World
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Templeton and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Capital World Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital World Bond and Templeton Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Templeton Global Bond are associated (or correlated) with Capital World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital World Bond has no effect on the direction of Templeton Global i.e., Templeton Global and Capital World go up and down completely randomly.
Pair Corralation between Templeton Global and Capital World
If you would invest (100.00) in Capital World Bond on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Capital World Bond or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Capital World Bond
Performance |
| Timeline |
| Templeton Global Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Capital World Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Templeton Global and Capital World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Capital World
The main advantage of trading using opposite Templeton Global and Capital World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Global position performs unexpectedly, Capital World can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Capital World will offset losses from the drop in Capital World's long position.| Templeton Global vs. Hennessy Technology Fund | Templeton Global vs. Blackrock Science Technology | Templeton Global vs. Janus Global Technology | Templeton Global vs. Technology Ultrasector Profund |
| Capital World vs. International Investors Gold | Capital World vs. Fidelity Advisor Gold | Capital World vs. Great West Goldman Sachs | Capital World vs. Oppenheimer Gold Special |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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